Veterans entitled to Veterans Administration disability compensation who have waived military retirement pay should refile with the Internal Revenue Service for an exclusion to reduce their taxable income.
Taxable income for veterans who have waived their retirement pay for VA compensation is reduced by an amount equal to the VA compensation. Award letters provided by the VA did not provide sufficient information for the IRS, making it necessary to refile, according to the Department of Veterans Affairs. Affected veterans should complete VA form 20-8993 with their annual federal tax forms.In a related VA clarification, veterans who have received military disability severance pay, and have subsequently received VA disability compensation, will have their VA compensation reduced by the entire amount paid by the military, including any amount paid for taxes.
Veterans with questions can contact the Salt Lake City Regional Office at 524-5960. The toll-free numbers are: Ogden 399-4433; Provo 375-2902. Other areas call (800) 662-9163.